VANCOUVER – A proposed new tax
credit for digital media, combined with changes to provincial film tax credits,
recognizes the convergence of these sectors andsupports the continued
growth, development and competitiveness of B.C.’s video game and film sectors
and the related employment they provide, Finance Minister Colin Hansen
announced today.

“This is a
made-in-B.C. incentive package that recognizes convergence is taking place
within the film, television and the increasingly important video game and
animation sectors,” said Hansen. “We are responding to industry needs and
recognize that film, television, animation, and visual effects companies
contribute over a billion dollars annually to the B.C. economy and generate
thousands of jobs.”

Subject to
approval by the legislature, the planned tax measures include:

·New BC Interactive Digital Media tax
credit for video game development of 17.5 per cent of qualifying B.C. labour
costs.

·Production Services Tax Credit on labour
costs for foreign productions increased to 33 per cent from 25 per cent.

·Qualified B.C. labour expenditures cap
increased to 60 per cent from 48 per cent of production costs.

It is proposed
that the film tax credit changes be effective for productions with principal
photography that begin after Feb. 28, 2010. The BC Interactive Digital Media
tax credit will be effective for qualifying video game development projects
that begin after Aug. 31, 2010.

“Our changes will
promote an increase in B.C.-based production for these dynamic and rapidly
changing sectors,” said Tourism, Culture and the Arts Minister Kevin
Krueger. “They will serve to help keep B.C. at the forefront of the North
American film and television industry, while providing a significant boost for
video game production in our province.”

The enhancements to the film tax
credits will help B.C. compete internationally. The tax rate changes, coupled
with B.C.’s other advantages including a highly skilled and well-trained
workforce, means B.C. will continue to be a leading and competitive production
location.

B.C. is the third-largest film and television
production centre in North America, after Los Angeles and New York. In 2008, a
total of 260 productions were shot in B.C. This included 65 feature films, 56
television series (dramatic, documentary and lifestyle/reality), 102 television
projects (TV movies, mini-series, pilots, shorts and documentaries) and 37
animated series or projects.

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Media Contact:

Graham Currie

Communications Director

Ministry of Finance

250 356-2821

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